Economics 0455 · IGCSE · Trade unions

Trade unions — practice question

In some countries, trade union membership is falling, yet in China it is rising. Workers’ industrial action is becoming more frequent in China as workers seek higher wages. A recent strike took place at a car factory in South China, owned by a Japanese multinational company.
(a)[2]

Define the term ‘multinational company’.

(b)[4]

Explain why governments may try to discourage strikes.

(c)[6]

Analyse three reasons why trade union membership may fall in a country.

(d)[8]

Discuss whether an increase in the wages a firm pays would lower its profits.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: has its headquarters in one country

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